Luxfer Holdings PLC (LXFR) 2026 Q1 法說會逐字稿

(Operator Instructions) Good morning. My name is Nikki, and I will be your conference operator today. Welcome to Luxfer's first-quarter 2026 conference call. (Operator Instructions) Now, I will turn the call over to Kevin Grant, Vice President of Investor Relations and Business Development at Luxfer. Kevin, please go ahead.

(接線員指示) 早安。我是 Nikki，今天將擔任本次電話會議的接線員。歡迎參加 Luxfer 2026 年第一季電話會議。(接線員指示) 現在我將把電話交給 Luxfer 投資人關係與業務發展副總裁 Kevin Grant。Kevin，請開始。

Thank you, Nikki, and good morning, everyone. Welcome to Luxfer's first-quarter conference call. This morning, we'll be reviewing Luxfer's financial results for the first quarter ended March 29, 2026. I'm pleased to be joined today by Andy Butcher, our Chief Executive Officer, and Steve Webster, our Chief Financial Officer.

謝謝你，Nikki，各位早安。歡迎參加 Luxfer 的第一季電話會議。今天早上，我們將回顧 Luxfer 截至 2026 年 3 月 29 日止第一季的財務結果。我很高興今天與我們的執行長 Andy Butcher 以及財務長 Steve Webster 一同出席。

Today's webcast is accompanied by a presentation that can be accessed at luxford.com. Please note any references in non-GAAP financials or reconcile in the appendix of the presentation. Before we begin, a friendly reminder that any forward-looking statements made about the company's expected financial results are subject to future risks and uncertainties. We undertake no obligation to update any forward-looking statements, whether a result of new information, future events, or otherwise. Please refer to the Safe Harbor Statement on Slide 2 of today's presentation for further details. During today's call, we'll be providing adjusted first-quarter 2026 financial results, excluding the graphics arts business, which was divested in 2025. Now let me introduce Luxfer's CEO, Andy Butcher. Please turn to Slide 3. Andy, please go ahead.

今天的網路直播搭配一份簡報，可於 luxford.com 取得。請注意，任何非 GAAP 財務數據的提及或調節表，均載於簡報附錄。在開始之前，提醒各位：任何關於公司預期財務結果的前瞻性陳述，均受未來風險與不確定性影響。無論因新資訊、未來事件或其他原因，我們均不承擔更新任何前瞻性陳述之義務。更多細節請參閱今日簡報第 2 頁的安全港聲明（Safe Harbor Statement）。在今天的電話會議中，我們將提供 2026 年第一季的調整後財務結果，並排除已於 2025 年出售的平面藝術（graphics arts）業務。現在讓我介紹 Luxfer 的執行長 Andy Butcher。請翻到第 3 頁。Andy，請開始。

Thank you, Kevin, and good morning, everyone. Thank you for joining us. We delivered a strong start to 2026, with performance in the quarter demonstrating disciplined execution across the business and financial results a little ahead of the expectations we outlined coming into the year. As we indicated previously, 2026 includes variability across certain end markets. Although that dynamic was evident in the first quarter, we delivered adjusted earnings per share of $0.27, up 17% year-over-year, along with adjusted EBITDA of $12.3 million and margins of 14.7%. This signifies the strengthened earnings power of the portfolio and the ability to sustain profitability at current volume levels. Within Elektron. Although timing dynamics drove lower volumes, demand across core areas remains intact with continued momentum in aerospace and defense.

謝謝你，Kevin，各位早安。感謝各位加入我們。我們在 2026 年取得強勁開局，本季表現展現了全公司在營運與財務上的紀律執行，財務結果也略優於我們在年初所提出的預期。如同先前所指出，2026 年在部分終端市場將存在波動。儘管第一季已反映出這樣的態勢，我們仍繳出調整後每股盈餘 0.27 美元，年增 17%，同時調整後 EBITDA 為 1,230 萬美元、利潤率 14.7%。這顯示我們投資組合的獲利能力已增強，並具備在目前出貨量水準下維持獲利的能力。在 Elektron 事業方面。雖然時點因素導致出貨量較低，但核心領域需求仍然穩健，航太與國防持續保持動能。

We also continue to advance our optimization initiatives, including the powdered Saxonburg Center of Excellence, enabling us to maintain strong margins. In gas cylinders, pricing and continued advancement of operational execution drove stronger year-over-year results. Our optimization program announced last year remains on track, with key milestones progressing as planned, and we expect to realize increasing benefits from these actions. Through the performance we have seen and improved visibility through the remainder of the year, we have the confidence to raise our full-year 2026 earnings guidance, increasing our adjusted diluted earnings per share to a midpoint of $1.17. As we look beyond 2026, we are increasingly confident in the momentum of the business and the driver supporting a step-up in performance in 2027.

我們也持續推進最佳化計畫，包括粉末（powdered）Saxonburg 卓越中心（Center of Excellence），使我們得以維持強勁的利潤率。在氣瓶業務方面，定價以及持續提升的營運執行帶動年對年表現轉強。我們去年宣布的最佳化計畫仍按進度推進，關鍵里程碑依計畫進展，我們預期將從這些行動中獲得愈來愈多的效益。基於目前所見的表現，以及對今年剩餘期間能見度的提升，我們有信心上調 2026 全年獲利指引，將調整後稀釋每股盈餘的中位數提高至 1.17 美元。展望 2026 年之後，我們對業務動能以及支撐 2027 年表現躍升的驅動因素愈發有信心。

Improving visibility across our end markets and the progress we are making on our operational initiatives position us well for a meaningful acceleration in earnings. We remain mindful of the broader geopolitical environment. But we see clear reasons for confidence based on specific drivers building across the business, including continued strength in aerospace and defense, the expected uplift in the SCBA replacement cycle, and the expansion into higher value applications such as space, supported by new product introductions. With that, I'll ask Steve to walk through the first quarter financial results and our updated outlook in more detail.

終端市場能見度的改善，以及我們在營運計畫上的進展，使我們具備條件推動獲利顯著加速成長。我們仍留意更廣泛的地緣政治環境。但基於公司內部逐步形成的具體驅動因素，我們有明確理由保持信心，包括航太與國防持續強勁、SCBA 更換週期預期帶來的提振，以及在新產品導入支持下，擴展至太空等更高價值應用。接下來我請 Steve 更詳細說明第一季財務結果以及我們更新後的展望。

Thanks, Andy, and good morning, everyone. Let's turn to Slide 4 for a review of our first quarter 2026 consolidated financial results. Turning to our topline, adjusted sales were $83.9 million, down 7.3%, consistent with the trends outlined earlier. Despite the lower sales level, adjusted EBITDA increased to $12.3 million, up 8.8% year-over-year. With adjusted EBITDA margin of 14.7%, an improvement of 220 basis points. As shown on the bridge, lower volumes created a headwind in the quarter due to timing dynamics discussed earlier. This was partially offset by pricing actions across the business, which outpaced inflation and supported strong margin performance. Importantly, we benefited from lower operating costs. Along with early savings from our Riverside consolidation initiative within gas cylinders.

謝謝，Andy，各位早安。請翻到第 4 頁，我們將回顧 2026 年第一季合併財務結果。先看營收端，調整後銷售額為 8,390 萬美元，年減 7.3%，與先前所說明的趨勢一致。儘管銷售水準較低，調整後 EBITDA 增至 1,230 萬美元，年增 8.8%。調整後 EBITDA 利潤率為 14.7%，提升 220 個基點。如同橋接圖所示，由於先前提到的時點因素，本季較低的出貨量形成逆風。這部分由全公司範圍的定價措施部分抵銷，定價漲幅超過通膨並支撐了強勁的利潤表現。重要的是，我們受惠於較低的營運成本。同時也包含氣瓶事業中 Riverside 整併計畫所帶來的初期節省。

Adjusted earnings to share was $0.27, up 17% year-over-year, demonstrating strong operating performance. From a cash flow perspective, cash from operations was an outflow of $4.1 million in the quarter, primarily driven by working capital, including inventory levels supporting our footprint optimization programs and the timing of receivables. Net debt at quarter end was $42.9 million, resulting in leverage of approximately 0.8 times, maintaining balance sheet strength and financial flexibility. Overall, the quarter reinforces the resilience of the business and robust execution.

調整後每股盈餘為 0.27 美元，年增 17%，展現強勁的營運表現。就現金流而言，本季營運活動現金流出 410 萬美元，主要受營運資金影響，包括為支援產能/據點最佳化計畫而維持的存貨水準，以及應收帳款的時點因素。季末淨負債為 4,290 萬美元，槓桿約為 0.8 倍，維持資產負債表的穩健與財務彈性。整體而言，本季再次印證了業務的韌性與強勁的執行力。

With that, let's turn to Slide 5 for a closer look at Electron's first quarter 2026 results. Sales for the quarter were $42.1 million, down 14.8% year-over-year, attributable to lower volumes across certain end markets. This was largely driven by zirconium applications within industrial markets, with some customer overstocking, along with the timing of high-end automotive wheels consistent with the off-cycle dynamics we outlined previously. This was partially offset by continued strength in aerospace and improvements in certain defense-related applications. Despite the lower sales, gross profit year-over-year was $14.7 million, with gross margin increasing to 34.9%, up more than 500 basis points. Adjusted EBITDA was $8.5 million, with an adjusted EBITDA margin in excess of 20%. Pricing actions in the period exceeded higher input costs, which, along with continued operational discipline across the segment, resulted in significant productivity improvements compared to the prior year. Overall, EleKtron delivered strong margin performance despite lower volumes, driven by pricing and operational execution. And we expect stronger revenues as well as continued progress across the segment's operational initiatives as we move through the remainder of the year. With that, let's turn to Slide 6 for our gas cylinders first quarter 2026 results.

接下來請翻到第 5 頁，更深入看看 Elektron 2026 年第一季的業績。本季銷售額為 4,210 萬美元，年減 14.8%，主要歸因於部分終端市場出貨量下降。這主要由工業市場中的鋯（zirconium）應用所帶動，部分客戶出現庫存偏高的情況；同時，高端汽車輪圈的出貨時點亦符合我們先前所提到的非週期（off-cycle）動態。上述影響部分被航太持續強勁，以及部分國防相關應用的改善所抵銷。儘管銷售下滑，年對年毛利為 1,470 萬美元，毛利率提升至 34.9%，增加超過 500 個基點。調整後 EBITDA 為 850 萬美元，調整後 EBITDA 利潤率超過 20%。本期定價措施超過投入成本上升幅度；再加上該事業群持續的營運紀律，使生產力相較去年顯著提升。整體而言，Elektron 在出貨量較低的情況下，仍在定價與營運執行帶動下繳出強勁的利潤表現。隨著今年剩餘期間的推進，我們預期營收將更強，同時該事業群的營運計畫也將持續取得進展。接下來請翻到第 6 頁，看看我們氣瓶事業 2026 年第一季的業績。

Sales for the quarter were $41.8 million, up 1.7% year-over-year. Performance was driven by broadly stable volumes across the segment, continued strength in higher-margin specialty industrial applications and modest improvement in alternative fuels. This was partially offset by lower volumes in aerospace related to our plant relocation and seasonally slower SCBA demand, including the impact of the partial federal shutdown. Despite the relatively stable sales level, gross profit increased to $7.2 million, with gross margins improving to 17.2%, up 360 basis points year over year.

本季銷售額為 4,180 萬美元，年增 1.7%。表現主要來自該事業群整體出貨量大致穩定、高毛利的特殊工業應用持續強勁，以及替代燃料業務小幅改善。上述表現部分被航太出貨量下降所抵銷，該下降與我們工廠搬遷相關；此外，SCBA 需求亦呈現季節性較弱，並包含聯邦政府部分停擺的影響。儘管銷售水準相對穩定，毛利仍增至 720 萬美元，毛利率提升至 17.2%，年增 360 個基點。

Adjusted EBITDA was $3.8 million, representing strong growth, with EBITDA margins of 9.1%, an improvement of 280 basis points. This performance was driven by pricing discipline across the business, which exceeded higher input costs, along with continued operational execution, including some early benefit from the relocation of the Pomona operation. Overall, gas cylinders delivered margin expansion despite modest volume headwinds in the first quarter, and we expect continued margin enhancement throughout the year. Looking further ahead, we see multiple growth levers for gas cylinders, including the SCVA replacement cycle, as well as space exploration as an emerging opportunity, with activity developing across a range of customers and programs.

調整後 EBITDA 為 380 萬美元，呈現強勁成長，EBITDA 利潤率為 9.1%，提升 280 個基點。此表現主要受惠於全公司嚴謹的定價紀律，足以抵銷較高的投入成本，並且持續落實營運執行，包括波莫納（Pomona）營運據點搬遷所帶來的部分早期效益。整體而言，儘管第一季在出貨量方面面臨些許逆風，氣瓶業務仍實現利潤率擴張，我們預期全年利潤率將持續提升。展望更長期，我們看到氣瓶業務具備多項成長槓桿，包括 SCVA 更換週期，以及太空探索作為新興機會，相關活動正於多元客戶與專案中逐步發展。

Let's now move to Slide 7 for an overview of our 2026 guidance update. We have raised our full-year earnings guidance based on the start to the year and improved visibility across the business. For the full year, we are now projecting our revenue in the range of $355 million to $370 million, while increasing our adjusted EBITDA to $52 million to $56 million and adjusted earnings per share to $1.12 to $1.22. The first quarter came in modestly ahead of our internal expectations and together with improving demand trends and visibility for the remainder of the year, support the updated guidance, including an implied midpoint of $1.17, while continuing to reflect a measured view of the broader macroeconomic environment.

接下來請看投影片 7，概述我們對 2026 年指引的更新。基於年初表現以及全公司能見度提升，我們上調了全年獲利指引。就全年而言，我們目前預估營收介於 3.55 億至 3.70 億美元，同時將調整後 EBITDA 提高至 5,200 萬至 5,600 萬美元，調整後每股盈餘提高至 1.12 至 1.22 美元。第一季表現略優於我們內部預期，並且在需求趨勢改善及對今年剩餘期間能見度提升的支持下，促成此次更新指引，其中隱含中位數為 1.17 美元，同時仍反映我們對整體宏觀經濟環境的審慎看法。

From a revenue perspective, the outlook continues to include timing dynamics in certain end markets, particularly within electron, which we expect to improve through the year. At the same time, we continue to see strength in aerospace and defense, supporting margin resilience and earnings progression. Within gas cylinders, demand trend remains constructive. With continued strength in specialty industrial applications and emerging opportunities in areas such as space exploration, supporting longer-term growth. We are making good progress on our productivity and optimization initiatives, which remain on track, with benefits expected to build through the second half of the year.

從營收角度來看，展望仍包含部分終端市場的時點因素，尤其是在 Elektron，我們預期將在今年逐步改善。同時，我們持續看到航太與國防領域的強勁表現，支撐利潤率韌性與獲利推進。在氣瓶業務方面，需求趨勢仍具建設性。特種工業應用持續強勁，且在太空探索等領域出現新興機會，支撐長期成長。我們在生產力與最佳化計畫方面進展良好，仍按計畫推進，預期效益將在下半年逐步累積。

Free cash flow guidance remains unchanged at $20 million to $25 million. Reflecting ongoing investment in CapEx improvement programs and elevated inventory levels supporting our footprint consolidation initiatives. Given current geopolitical uncertainty, we are proactively monitoring global events as well as domestic tariff activity. To date, we have observed no impact on demand and we have been successful in passing through increased costs. Overall, our updated guidance reflects a strong start to the year. Improved visibility and a balanced view of the operating environment. With that, I will turn the call back to Andy to provide additional perspective on the outlook beyond 2026.

自由現金流指引維持不變，為 2,000 萬至 2,500 萬美元。此反映我們持續投資於資本支出（CapEx）改善計畫，以及為支援產能/據點整併（footprint consolidation）措施而維持較高的庫存水位。鑑於目前地緣政治不確定性，我們正主動監控全球事件以及國內關稅動態。截至目前，我們未觀察到需求受到影響，且已成功將成本上升轉嫁出去。整體而言，我們更新後的指引反映今年強勁的開局。能見度提升，並對營運環境採取平衡的觀點。接下來我將把電話交回 Andy，請他就 2026 年以後的展望提供更多觀點。

Thank you, Steve. Please turn to slide 8. As we look beyond 2026, it's helpful to start with where we are today. At the midpoint of our updated guidance, we are operating at approximately $1.17 of adjusted earnings per share. With improved margins and a portfolio that continues to perform well despite near-term timing dynamics in certain markets. From that base, we see a clear and credible path to a meaningful step-up in earnings in 2027, supported by a number of drivers already underway. Starting with Elektron, the business will continue to benefit from strong and growing aerospace and defense demand. Driven by the increasing use of precisely engineered magnesium alloys, where light weighting remains a key priority. Recent wins, including a new European aerospace defense application, reinforce our confidence in this trajectory.

謝謝你，Steve。請翻到投影片 8。在展望 2026 年以後之前，先從我們目前的狀況談起會更有幫助。以更新後指引的中位數來看，我們目前的調整後每股盈餘約為 1.17 美元。在利潤率改善之下，即使部分市場短期存在時點因素，我們的產品組合仍持續表現良好。以此為基礎，我們看到 2027 年獲利可望顯著躍升，且路徑清晰可信，並由多項已在推進中的驅動因素所支撐。首先是 Elektron，該業務將持續受惠於強勁且成長中的航太與國防需求。其動能來自精密工程鎂合金使用量增加，而輕量化仍是關鍵優先事項。近期的得標案（包括一項新的歐洲航太國防應用）進一步強化我們對此成長軌跡的信心。

We are also seeing increasing momentum in the adoption of both of our Magtech heater solutions, with interest building across a broader set of international markets. As well as continued expectation for domestic flameless ration heater add-on order in 2027. This is complemented by the expected recovery in high-end automotive applications as prior off-cycle dynamics normalize. This reflects timing within the end customer portfolio with updated vehicle platforms and configuration options that incorporate our high-performance magnesium components. In addition, we continue to make progress with a number of new product development applications and specialty platforms, including areas such as passive chemical detection and medical field emergency solutions, where we are seeing growing customer interest. Taken together, we expect Elektron to deliver steady mid to high-single-digit sales growth year-on-year. Supporting a meaningful uplift in contribution to overall 2027 earnings.

我們也看到兩款 Magtech 加熱器解決方案的採用動能持續提升，且在更廣泛的國際市場中關注度正在升溫。同時，我們仍預期 2027 年國內無焰口糧加熱器（flameless ration heater）加購訂單將持續。此外，隨著先前非週期性因素回歸常態，高階汽車應用預期將復甦。這反映終端客戶產品組合的時點變化，包含導入新車平台與配置選項，並採用我們的高性能鎂組件。另外，我們在多項新產品開發應用與特種平台方面也持續取得進展，包括被動式化學偵測與醫療現場緊急解決方案等領域，客戶興趣正持續升溫。綜合而言，我們預期 Elektron 將實現穩健的年對年中至高個位數營收成長。並對 2027 年整體獲利的貢獻帶來顯著提升。

Turning to gas cylinders, we expect the return of the SCBA replacement cycle, including next-generation cylinders and larger municipal upgrades, as a significant portion of the installed base moves into a more active replacement phase. This represents a multi-year incremental opportunity for the segment. Within aerospace, demand continues to be supported by commercial build rates and program outlooks from large OEMs, providing a clear and visible growth profile as aircraft production levels increase. We are also seeing new momentum in space exploration applications, where our products are being specified across an expanding range of programs and platforms. Along with hydrogen bulk gas, this is an area of higher growth within the portfolio. With activity expanding across multiple customers as the market continues to scale. Taken together, we expect gas cylinders to deliver a stronger rate of sales growth, contributing to the overall step-up in earnings.

轉到氣瓶業務，我們預期 SCBA 更換週期將回歸，包括下一代氣瓶與更大規模的市政升級，因為相當比例的既有裝機基礎將進入更活躍的汰換階段。這將為該事業部帶來為期多年的增量機會。在航太領域，需求持續受到商用機製造速率與大型 OEM 的專案展望所支撐，隨著飛機產量提升，提供清晰且可見的成長輪廓。我們也看到太空探索應用出現新的動能，我們的產品正被指定於日益擴大的各類專案與平台中。連同氫氣大宗氣體（hydrogen bulk gas），這是產品組合中成長較快的領域。隨著市場持續擴張，相關活動正擴及多家客戶。綜合而言，我們預期氣瓶業務將帶來更強勁的營收成長率，並推動整體獲利的躍升。

Finally, across operations, we are progressing the productivity and optimization initiatives announced at the end of 2025, including footprint actions and our Center of Excellence programs. These initiatives are expected to be largely completed by the end of 2026, with the benefits carrying into 2027. We expect these actions to contribute significant incremental EBITDA, supporting improved efficiency and margin expansion as previously noted. Given the strength of these underlying drivers and the visibility we're building across the business. We see a clear and credible path to robust double-digit earnings growth in 2027. This significant uplift reflects the progression from our. 2026 phase, supported by volume recovery, specific growth in higher value applications, and the full realization of our operational initiatives. Overall, we feel good about the momentum in the business and the opportunities ahead. Please turn to slide 9.

最後，在營運面，我們正推進於 2025 年底宣布的生產力與最佳化計畫，包括據點調整（footprint actions）以及卓越中心（Center of Excellence）計畫。這些計畫預期將在 2026 年底前大致完成，其效益將延續至 2027 年。我們預期這些行動將帶來顯著的增量 EBITDA，支撐效率提升與利潤率擴張，如先前所述。基於這些底層驅動因素的強勁表現，以及我們在全公司建立的能見度。我們看到 2027 年實現強勁雙位數獲利成長的路徑清晰且可信。這項顯著提升反映我們從 2026 年階段的推進，並由出貨量復甦、更高價值應用的特定成長，以及營運計畫的全面落實所支撐。整體而言，我們對業務動能與未來機會感到樂觀。請翻到投影片 9。

Before we take questions, let me briefly summarize the key highlights from the quarter. We delivered a strong start to 2026 with solid earnings growth and margin expansion driven by disciplined execution across the business. We have raised full-year earnings guidance based on clearer visibility with stronger revenues in the quarters ahead and improvements supported by operational enhancements and pricing. We see a clear and credible path to a meaningful step-up in earnings in 2027. Supported by specific multiple drivers already underway. We remain focused on executing our strategic review process with the objective of maximizing shareholder value. Overall, we are encouraged by the direction of the business and the opportunities ahead as we move through 2026 and position for a step up in performance in 2027. I will now turn the call back to the operator for questions. Nikki, please go ahead.

在進入提問之前，我先簡要總結本季的重點亮點。我們在 2026 年取得強勁開局，透過全公司有紀律的執行，實現穩健的獲利成長與利潤率擴張。基於能見度更清晰、未來幾季營收更強，以及營運改善與定價所支撐的提升，我們上調了全年獲利指引。我們看到 2027 年獲利可望顯著躍升，且路徑清晰可信。並由多項已在推進中的具體驅動因素所支撐。我們仍專注於執行策略檢討流程，目標是將股東價值最大化。整體而言，隨著我們推進 2026 年並為 2027 年的績效躍升做好布局，我們對業務方向與未來機會感到鼓舞。現在我將把電話交回接線員，進行提問。Nikki，請開始。

Thank you. (Operator Instructions) We'll take our first question from Steve Ferazani with Sidoti. Please go ahead. Your line is open.

謝謝。(接線員指示) 我們將開始第一個提問，來自 Sidoti 的 Steve Ferazani。請開始。您的線路已開通。

Morning, Andy. Morning, Steve. Appreciate the detail on the call. Certainly, very appreciative of the very early outlook on 2027. That's exceptionally helpful. I guess, Andy, the two big surprises to me are the strength in the elektron margins and the fact that you're able to grow gas cylinders year over year, given the issues that you had outlined previously. That were going to impact in Q1. So I just want to walk through those two specifically. Very rare to see that kind of margin improvement segment-wise that we saw in Electron when revenue was declining. Can you walk us through the pieces on that? What drove such significant margin improvement? It looks like the highest quarterly margin you've had in that segment since I have to go back to it looks like 2022.

早安，Andy。早安，Steve。感謝您在電話會議中提供的細節。當然，也非常感謝您這麼早就提供對 2027 年的展望。這非常有幫助。我想，Andy，對我而言兩個最大的意外是 Elektron 利潤率的強勁表現，以及在您先前提到的問題之下，您仍能讓氣瓶業務年對年成長。您之前說這些問題會在第一季造成影響。所以我想特別針對這兩點逐一請教。在 Elektron 這個部門，營收下滑時卻能看到那樣的分部利潤率改善非常罕見。您能否帶我們了解其中的構成？是什麼驅動了如此顯著的利潤率提升？看起來這是該部門自我回頭看起來像是 2022 年以來最高的單季利潤率。

Yes, thank you, Steve. We were very pleased with our Q1 and the performance in both the units. In our assessment also, it was a very nice result in Elektron. So we saw strong demand coming through in aerospace and defense, a nice mix of higher value products. We saw strong operational performance across most of the facilities. And that led to margins pushing above 20% despite the low values. So much to be pleased about there, especially overcoming that impact of the temporary softness in automotive high-performance wheels. We should see higher revenues now coming through in upcoming quarters and that's helped us raise our guidance. So, another nice result for Elektron. And then in cylinders, yes, revenues held up nicely, in fact, slightly higher. So cylinders Q1 profitability significantly ahead of the prior year quarter run rates. Some of the positives to highlight on the revenue line were around specialty products, demand for the specialty gas cylinder range, for example. Some incremental profit coming through from space. And then continued pricing improvements versus inflation were helpful on the margin line, along with the relocation of the Pomona to Riverside operation. So a nice result for cylinders also.

是的，謝謝你，Steve。我們對第一季以及兩個事業單位的表現都非常滿意。以我們的評估來看，Elektron 的結果也非常不錯。因此，我們看到航太與國防需求強勁，且高價值產品的組合占比提升。我們也看到多數廠區的營運表現強勁。即使在較低的量值之下，這也使利潤率推升到 20% 以上。因此有很多值得肯定之處，尤其是在克服汽車高性能輪圈短期疲弱的影響方面。我們應該會在接下來幾季看到更高的營收進來，這也幫助我們上調指引。所以，Elektron 又交出一個不錯的結果。至於氣瓶方面，是的，營收維持得很好，事實上還略有增加。因此，氣瓶第一季的獲利能力顯著高於去年同期的水準。在營收面值得強調的一些正面因素包括特殊產品，例如特殊氣體氣瓶系列的需求。也有一些來自太空領域的增量利潤貢獻。此外，持續的定價改善相對於通膨對利潤率也有幫助，再加上將 Pomona 作業遷移至 Riverside。所以氣瓶業務也有不錯的結果。

What was the surprise to you coming into that you saw in the quarter in terms of volume? You pointed out a couple of times, specialty gas cylinders. How much of that semiconductor, which we think is going to have a really nice couple of years here, is that the key driver there, or was it mixed?

就出貨量而言，您在進入這一季前，看到的意外是什麼？您提到幾次特殊氣體氣瓶。其中有多少是半導體相關（我們認為未來幾年會有很不錯的表現）？那是主要驅動因素嗎，還是更偏向混合因素？

Yes, so two key elements to the gas cylinder's success on the specialty range. That is indeed related to semiconductors. Our larger cylinders are used to store expensive premium gases for the semiconductor market. And then we also have a range of smaller cylinders that gets used in the calibration market for testing cylinders and for monitoring the testing sensors and for monitoring the performance of them. So yes, it was a nice period for specialty gas. We also saw a little uptick in the CNG market, which was a slight surprise. I don't necessarily think I can yet point to a long-term trend of improvements in clean energy, but that will come through at some point, and it was nice to see those slightly higher volumes there.

是的，所以氣瓶在特殊產品線成功的兩個關鍵要素。這確實與半導體相關。我們較大型的氣瓶用於儲存供半導體市場使用的昂貴高階氣體。此外，我們也有一系列較小型的氣瓶，用於校準市場，作為測試用氣瓶，以及用於監測測試感測器並監測其效能。所以是的，這段期間特殊氣體表現不錯。我們也看到 CNG 市場有些微回升，這有點出乎意料。我還不一定能把它歸因為潔淨能源長期改善的趨勢，但那在某個時間點會逐步顯現，而看到那邊的出貨量略為提高也很不錯。

Got it. Update on the Saxonburg facility? Where are you with that?

了解。Saxonburg 廠的最新進度如何？目前進展到哪裡了？

Yes, so in terms of the move to Saxonburg, that's the second of our relocation activities. So, all of the atomization of powders and preparation of powders that was being done in Saxonburg, in Tamaqua has now moved across to our Saxonburg facilities. We do continue to run down our stock in Tamaqua and that will continue for at least another couple of months as we ramp up in Saxonburg. So, that project is on track and will be completed by the end of the year. We're more advanced with the first of our moves. That's in our cylinders business from Pomona to Riverside. The operations have now ceased in Pomona and since the start of the year, we've been ramping up production in Riverside. And all of those lines are now operational, albeit that we're still waiting for some product approvals to be completed so we don't see the full benefits from that move until later in the year.

是的，關於搬遷到 Saxonburg，這是我們第二項遷移作業。因此，原本在 Tamaqua 的 Saxonburg 進行的所有粉末霧化與粉末前處理作業，現在都已移轉到我們 Saxonburg 的廠區。我們仍在 Tamaqua 持續消化庫存，並且在 Saxonburg 擴產爬坡期間，這將至少再持續幾個月。因此，該專案進度如期，並將在年底前完成。我們在第一項搬遷上進度更為超前。那是在我們氣瓶事業，從 Pomona 搬到 Riverside。Pomona 的營運現已停止，自年初以來我們一直在 Riverside 提升產能。目前所有產線都已投入運作，但我們仍在等待部分產品認證完成，因此要到今年稍晚才會看到這次搬遷的完整效益。

Got it. I guess for Steve, I think you noted the higher working capital part of that was the relocation. Should we see inventory levels coming down and be more of a benefit as the year goes on?

了解。我想對 Steve 來說，您提到營運資金較高的部分原因是搬遷。隨著今年進行，我們是否會看到庫存水位下降，並帶來更正面的效益？

Yes, I think that's a fair comment. So first of all, I mean, in terms of the cash being a modest outflow in the quarter, I mean, that's not unusual for quarter one. That often happens. But yes, inventory has ticked up to $100 million, which is up about $8 million higher than it was at year end. That is linked to holding higher levels for the two projects. I would also say there is some pricing coming through in terms of certain materials, which in turn has an upward pressure on the inventory value. Very confident we will be able to pass those on ultimately through price, so no concern there. But yes, it should come down. Our OWCs around about 30% of revenue at the end of last year. I think it was at 25%, 26%. And I would expect to get close to that as we get to towards the end of the year this year.

是的，我認為這樣的看法合理。首先，就本季現金呈現小幅流出而言，第一季出現這種情況並不罕見。這經常會發生。不過是的，庫存已上升至 1 億美元，較年底增加約 800 萬美元。這與兩個專案需要持有較高水位的庫存有關。我也要補充，某些材料的價格上漲也正在發生，進而對庫存價值造成上行壓力。我們非常有信心最終能透過售價把這些成本轉嫁出去，因此不擔心。但是的，庫存應該會下降。我們去年底的營運資金（OWC）約占營收 30%。我想之前大約在 25%、26%。我預期今年接近年底時會回到接近那個水準。

Excellent. That's helpful. Turning to the 2027 outlook, this is very helpful to us. Can you walk through sort of. Because the earnings growth this year is pretty much predicated on margin improvement, but it sounds like in 2027, you see a real top-line contributor. Andy, just early on, what gives you that confidence to put this out there and any particular areas you want to point out?

很好。這很有幫助。回到 2027 年展望，這對我們非常有用。您能否帶我們梳理一下。因為今年的獲利成長幾乎是建立在利潤率改善之上，但聽起來在 2027 年，您看到營收端會有實質貢獻。Andy，就目前這麼早的階段，是什麼讓您有信心提出這樣的展望？以及是否有任何特定領域您想特別指出？

Yes, thank you. I'm glad that was helpful because we have heard from a number of shareholders over the last two months. But they want to hear more clearly from us about the medium-term growth and earnings drivers. And the improved visibility in 2026 is also now giving us clearer insight into 2027. So if we were to refer back to slide 8, we can see some of those laid out and why overall we anticipate at least high single-digit sales growth in 2027. So I want to emphasize first the strong outlook for our overall defense and aerospace segments, whether it's for alloys, flares, heaters, chemical kits, or commercial aviation. Demand is robust, and we'll see growth overall in 2027. And then perhaps to provide extra color on three areas where we strongly expect there'll be tailwinds in 2027.

是的，謝謝。我很高興這對你們有幫助，因為過去兩個月我們也聽到不少股東的回饋。他們希望我們更清楚說明中期的成長與獲利驅動因素。而 2026 年能見度的提升，也讓我們對 2027 年有更清晰的洞見。因此，如果我們回到第 8 張投影片，可以看到其中列出的一些因素，以及為何我們整體預期 2027 年至少會有高個位數的銷售成長。我想先強調，我們整體國防與航太相關業務的展望強勁，不論是合金、照明彈、加熱器、化學套件，或商用航空。需求相當強勁，我們在 2027 年整體將看到成長。接著，或許我可以就三個我們強烈預期在 2027 年會有順風的領域，提供更多補充說明。

Firstly, Steve, there is this multi-year replacement cycle coming for SCBA that begins to impact in 2027. The major players in the industry are planning for this now. The cylinders and sets age out and need replacing. Some of the largest municipalities in the country are looking to replace and upgrade. One of them we know is in open discussions on this already for up to 10,000 sets. Secondly. I'd like to talk to flameless ration heaters, which we are increasingly confident will grow in 2027 internationally and domestically. There are positive buying signals that suggest an add-on order will lift domestic demand early next year and we're currently quoting on four pieces of international business on an unprecedented level.

首先，Steve，SCBA 即將迎來一個為期多年的汰換週期，並將於 2027 年開始產生影響。產業內的主要參與者現在就已在為此規劃。氣瓶與整套裝備會隨時間老化到期，需要更換。全國一些最大的市政單位正考慮進行汰換與升級。其中之一我們知道已就多達 10,000 套展開公開討論。第二點。我想談談無火焰口糧加熱器（flameless ration heaters），我們愈來愈有信心其在 2027 年於國際與國內市場都將成長。有正面的採購訊號顯示，明年初一筆加購訂單將帶動國內需求，而我們目前正以前所未有的規模，就四個國際業務案進行報價。

And thirdly. Normalized demand for magnesium alloy for those high-performance automotive wheels is scheduled to return around quarter four of this year as model years roll over. We've recently learned that the uptake rate on the magnesium special option has increased in 2026. So we're actually seeing some recovery here coming in already. And of course, we have new product development and space as part of the picture as well. Now, there will always be some surprises and headwinds, but suffice it to say there is a good understanding we have of all of this, and you combine it with the benefits of our operational excellent work and that enables us to say we expect robust double-digit earnings growth in 2027.

第三點。用於高性能汽車輪圈的鎂合金，其常態化需求預計將在今年第四季左右、隨著車款年度更替而回升。我們最近得知，鎂合金特殊選配的採用率在 2026 年有所提高。因此我們其實已經看到一些復甦正在出現。當然，我們也有新產品開發與航太（space）領域作為整體版圖的一部分。現在，總會有一些意外與逆風，但可以說我們對這一切都有相當充分的理解；再結合我們營運卓越工作的效益，使我們能夠表示：我們預期 2027 年獲利將有強勁的兩位數成長。

Extremely helpful. And talking about the surprises or uncertainties, and you're watching geopolitical developments, we all are. But when I look at your end markets, not a lot of them should be impacted by elevated oil prices. Am I thinking about that right, at least from a demand standpoint?

非常有幫助。談到意外或不確定性，以及你們在關注地緣政治發展——我們也都在關注。但當我看你們的終端市場時，其中不太多應該會受到高油價的影響。至少從需求面來看，我這樣想對嗎？

Yes, you are. We're, of course, like everyone, conscious of the geopolitical situation and any wider macroeconomic consequences, and we'll continue to monitor this closely. But right now, we're not seeing anything concerning from a demand perspective. Indeed, we're seeing some indications of a future uplift related to certain defense products. Now, as Steve mentioned, we are seeing some inflationary costs come through on some materials. We see that on both metals and chemicals. But where we have customer contracts, we have quarterly pass-through adjusters and we're seeing good acceptance of price changes, both within those and on our spot order basis. And as you suggest, our product portfolio in general is biased away from consumer products, tends to be rather resilient in the face of uncertainties. So overall, not a big factor for us right now.

是的，你的理解正確。我們當然和所有人一樣，關注地緣政治情勢及其更廣泛的總體經濟後果，並會持續密切監測。但就目前而言，從需求角度我們沒有看到任何令人擔憂的情況。事實上，我們看到一些與特定國防產品相關、未來需求上升的跡象。另外，如 Steve 所提到的，我們確實看到部分材料出現通膨性成本上升。金屬與化學品兩方面都有。但在我們有客戶合約的地方，我們有按季的轉嫁調整機制（pass-through adjusters），而且我們看到客戶對價格變動的接受度良好，無論是在這些機制內或在現貨訂單基礎上皆然。而如你所說，我們的產品組合整體而言較少偏向消費性產品，面對不確定性時通常更具韌性。所以整體來看，這目前對我們不是很大的因素。

Great. If I could just squeeze one last one in. On your final slide, you noted an active strategic review. Active might have been newly added, or maybe I'm misreading it in terms of whether -- can you give any comments around the strategic review?

很好。如果我可以再塞進最後一個問題。在你們最後一張投影片上，你們提到正在進行積極的策略檢討（active strategic review）。「Active」可能是新加上的，或也許我誤讀了——就這個策略檢討，你能否提供任何評論？

I'll just remind people that there were three conclusions associated with our strategic review in 2024. The sale of the graphic arts business, which is now complete, enhancing the performance of gas cylinders and electron, and maintaining full strategic optionality. So, with respect to the third strategic optionality, we do maintain our view that gas cylinders and electron have no material strategic syllogies, and we're continuously assessing performance and market conditions to maximize shareholder value.

我先提醒大家，我們在 2024 年的策略檢討有三項結論。出售平面藝術（graphic arts）業務——目前已完成；提升氣瓶（gas cylinders）與電子（electron）業務的表現；以及維持完整的策略選擇權。因此，就第三點策略選擇權而言，我們仍維持我們的看法：氣瓶與電子業務之間不存在重大的策略協同效益（strategic synergies），我們也會持續評估營運表現與市場狀況，以最大化股東價值。

Over recent months, we have continued our readiness preparations, that's including work with various third parties, including investment banking and strategic growth advisors. But turning back to enhancing gas cylinders and electron, we've made strong progress over the last quarters, and I've talked in detail in my prepared remarks about how we are executing opportunities for both profitable growth and cost reductions as we move forward.

在最近幾個月，我們持續進行就緒準備工作，其中包括與多家第三方合作，包含投資銀行與策略成長顧問。但回到提升氣瓶與電子業務表現這一點，我們在過去幾個季度已取得強勁進展；我也在事先準備的發言中詳細說明了，隨著我們向前推進，我們如何同時落實獲利成長機會與成本降低。

Great. Thanks, Andy. Thanks, Steve.

很好。謝謝你，Andy。謝謝你，Steve。

Thank you. There are no more questions in the queue. At this time, I will turn the call over to CEO, Andy Butcher, for final remarks.

謝謝。目前佇列中沒有更多問題。此時我將把電話會議交回給執行長 Andy Butcher 作結語。

Thank you, Nikki. Luxfer is well positioned with a resilient earnings profile and a trajectory for growth in 2027. We are executing with discipline and building momentum across the business, supported by improving end-market demand and continued operational progress. The actions we have taken over the past several quarters are gaining traction and positioning the business for a meaningful step-up in performance. I want to thank our associates for their continued performance and commitment and thank you for your continued support.

謝謝你，Nikki。Luxfer 具備韌性的獲利結構，並在 2027 年有成長軌跡，整體定位良好。在終端市場需求改善與營運持續進步的支持下，我們以紀律執行，並在整個業務中建立動能。我們在過去幾個季度採取的行動正逐步發揮效果，並使公司處於能夠顯著提升績效的有利位置。我要感謝我們的同仁持續的表現與投入，也感謝各位持續的支持。

Thank you. This concludes Luxfer's first quarter 2026 earnings call. A recording of this conference call will be available in about two hours. A link to a recording of this webcast will be available on the Luxfer's website at www.luxfer.com. Thank you all for your participation. You may now disconnect.

謝謝。以上為 Luxfer 2026 年第一季財報電話會議。本次電話會議的錄音將於約兩小時後提供。本次網路直播的錄影連結將公布於 Luxfer 官網 www.luxfer.com。謝謝各位的參與。您現在可以掛線。